15, April 2015

USD/JPY (a 4-hour chart)

USD/JPY (a 4-hour chart)

General overview

We observe bearish sentiments. As it was mentioned earlier - the March retail sales positive release can spur demand for the US dollar and contribute to the US and Japan bond yields continued expansion. However the yen strengthen against the dollar on the yesterday’s trades.

The price is finding the first support at 119.20, the next one is at 118.30. The price is finding the first resistance at 120.40, the next one is at 121.60.

There is a confirmed and a strong sell signal. The price is under the Cloud and it is under the Chinkou Span. The Tenkan-sen shows a downward movement and the Kijun-sen shows a horizontal movement. The downward movement will be until the price is under the Cloud.

The MACD indicator is in a negative territory. The price is decreasing.

Trading recommendations

We suppose the pair will go to 119.20 first. Having overcome the first target the price might go downwards to 118.30.